India Supreme Court keeps ban on Jaiprakash Associates asset sales

Jaiprakash Associates

10/01/2018 08:33

NEW DELHI, Jan 10 (Reuters) - India's top court on Wednesday 
maintained a ban on sale of assets or a stake in Jaiprakash 
Associates Ltd  JAIA.NS , while saying it would hear at a later 
date a plea by the central bank seeking to push the 
infrastructure company into insolvency proceedings. 
    Jaypee Infratech Ltd  JYPE.NS , a group company of 
Jaiprakash Associates, is already being pursued in the 
bankruptcy court over loan defaults.  
    Many buyers of apartments in a mega township project being 
built by Jaypee Infratech on the outskirts of New Delhi have 
petitioned the court over fear that they would lose their money. 
    The top court last year moved to protect the homebuyers' 
interests, asking Jaiprakash Associates to deposit 20 billion 
rupees with it and also barred any sale of assets.  urn:newsml:reuters.com:*:nL4N1LS3WK 
    RBI wants Jaiprakash Associates' creditor banks to push the 
company into insolvency resolution proceedings, but the Supreme 
Court order restricting sale of assets would obstruct that, 
bankers and lawyers have said.  
    As part of the insolvency resolution, creditors would need 
to seek bids for assets or a stake in the company.   
    RBI, Jaiprakash Associates and its lead lender ICICI Bank 
 ICBK.NS  did not immediately reply to requests for comment. 
 
 (Reporting by Suchitra Mohanty; Writing by Devidutta Tripathy; 
Editing by Simon Cameron-Moore) 
 ((devidutta.tripathy@thomsonreuters.com; +91 84518 40430; 
Reuters Messaging: 
devidutta.tripathy.thomsonreuters.com@reuters.net)) 
 
Keywords: JAIPRAK ASSO COURT/